European equities look set for a second-half catch-up, according to the balance of research published this week.
Several strategy notes argued the region is positioned to benefit as investors rotate away from crowded US AI names, with the reopening of Strait of Hormuz flows and easing energy pressure adding a tailwind. Sector picks skewed toward semiconductors (framed as Europe's own AI CapEx play), banks (steeper curves, healthy payouts), capital goods, utilities, and defense and infrastructure names tied to fiscal stimulus. Rising index levels midweek were linked to expectations of a more accommodative ECB stance.
Not everyone agreed: one strand of research flagged sharp institutional outflows from Europe on weaker earnings revisions versus the US and Asia, arguing the underweight should persist.
On single names, technical commentary pointed to constructive setups in Beiersdorf, Deutsche Telekom and E.ON, while Maersk's raised profit guidance was flagged as a near-term catalyst. Rheinmetall's defense-led bounce was called into question late in the week pending a forecast review.